The UK economy is expected to have shrunk by 1.0% in the three months through November, according to the National Institute for Economic and Social Research. Recession fears have intensified as the previous figure saw a revision to -0.8%, down 0.3 percentage points from original estimates. The last time the economy contracted at such a quick pace was in 1990, when it contracted by 1.2%.
It is likely that the rate of deterioration will continue to accelerate. “The figures make clear that the rate of output decline is accelerating,” today’s NIESR report said. GDP in the fourth quarter will “be larger than 1 percent in magnitude,” the statement added.
GBPUSD traded through 1.4776 at 19:18 EST.
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